China’s export growth lost steam in November

BEIJING: Export growth in China lost some steam in November, as holiday demand from abroad faded, official data showed on Tuesday, but the demand for overseas fuel pushed up imports to spike above expectations.

Strong exports have helped boost growth in the world’s second-largest economy since the middle of 2020, with China containing domestic outbreaks through tough lockdowns and mass testing, after the coronavirus was first detected in the central city of Wuhan.

Despite recent power outages caused by emissions-reduction targets, the surging price of coal, and supply shortages, factories kept the goods flowing and the power crisis has been winding down.

But experts have warned that the export boom is likely to fade, as the world gradually returns to normalcy.

In November, exports rose 22 per cent on-year, better than analysts expected but below the 27.1 per cent growth clocked in October, according to the latest Customs data.

A recent report by ING said Chinese exports are likely to slow down “given that most orders for western holiday demand have been fulfilled”.

Imports; however, rose an unexpected 31.7 per cent, well above the 21.5 per cent increase tipped by a Bloomberg consensus poll.

“The surprisingly high number comes from contributions of coal, natural gas and crude oil imports… it’s basically to meet the domestic demand for energy,” a senior China strategist at ANZ Research Zhaopeng Xing said.

Given that China still has limited energy capacity and will need time to build it up, the energy-related imports will continue in the coming months, Xing told AFP.

With most other countries opting for a strategy of living with the Covid-19 and reopening economies, the demand for protective gear and work-from-home products could shift to services, Nomura chief China economist Lu Ting earlier said.

On Tuesday, the official data showed that China’s total trade surplus was $71.7 billion in November, down from $84.5 billion the month before.

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